By Andrea Heisinger
New York, June 16 - Valspar Corp. priced an upsized $300 million 7.25% 10-year senior notes Tuesday to yield Treasuries plus 362.5 basis points, an informed source said.
The size was increased from $250 million, he said. The notes had price talk in the 375 bps area, with a margin of plus or minus 12.5 bps.
The notes (Baa2/BBB/) priced at 99.574 to yield 7.311% with a make-whole call at Treasuries plus 50 bps.
The notes feature a change-of-control put of 101%.
Bookrunners were Banc of America Securities LLC, Goldman Sachs & Co. and Wachovia Capital Markets LLC.
Co-managers were Deutsche Bank Securities Inc., Mitsubishi UFJ Securities, PNC Capital Markets, U.S. Bancorp Investments and Comerica Securities.
Proceeds will be used to repay a portion of commercial paper borrowings and others obligations under existing bank credit facilities.
The coating and paint manufacturer is based in Minneapolis.
| Issuer: | Valspar Corp.
|
| Issue: | Senior notes
|
| Amount: | $300 million, increased from $250 million
|
| Maturity: | June 15, 2019
|
| Bookrunners: | Banc of America Securities LLC, Goldman Sachs & Co., Wachovia Capital Markets LLC
|
| Co-managers: | Deutsche Bank Securities Inc., Mitsubishi UFJ Securities, PNC Capital Markets, U.S. Bancorp Investments, Comerica Securities
|
| Coupon: | 7.25%
|
| Price: | 99.574
|
| Yield: | 7.311%
|
| Spread: | Treasuries plus 362.5 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
| Change-of-control put: | 101%
|
| Trade date: | June 16
|
| Settlement date: | June 19
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
| Price talk: | 375 bps area, plus or minus 12.5 bps
|
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